Investor Vijay Kedia decodes how markets, economy may fare if Modi retains power

Renowned equity investor Vijay Kedia believes that the market has already discounted the victory of the Modi government. That’s why it is moving in a range. At the same time, he also thinks that the market may witness some correction in case of any unfavourable outcome on June 4.

Kedia is known for picking quality stocks early. At present, his equity portfolio stands at more than Rs 1,600 crore. Some of the stocks in his portfolio include Tejas Networks, Atul Auto, Elecon Engineering, Neuland Laboratories, Sudarshan Chemicals, Mahindra Holidays & Resorts, Vaibhav Global, Patel Engineering, Global Vectra Helicorp and Om Infra, among others.

The market veteran added that if the government led by Prime Minister Narendra Modi returned to office, reforms would kick off from the very first month. Recently, in February, Union Finance Minister Nirmala Sitharaman also reiterated that the National Democratic Alliance (NDA) government under PM Modi’s leadership would prioritise significant reforms in land, capital and digital infrastructure to propel India towards development, provided they secure another term in power.

“The next-generation reforms will claim top spot on the government’s agenda in its third term,” Sitharaman said at a conclave.

In an interaction with Business Today, Kedia also said that sectors that were doing good will continue to perform going ahead, if Modi returns for a third term. “We may see exponential development in the country. Sectors such as defence, power, infrastructure and telecom will do well,” he said adding the next five years will be a golden opportunity for India.

“If we plant seeds now, we will get fruit in the next 20 years. Our country might become richer or may move away from a middle-income economy. Indian economy might grow more than what agencies like the World Bank think it will,” Kedia added.